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Thank you Robert thank you everybody the jobless rate has fallen to a two and a half year low -- but it's a mixed picture right now that's a little bit of good good with a little bit about joining us now from the White House is Alan Krueger he's chairman of the council of economic advisors.
Thank you so much for being here look the spin -- on both sides jumped all over this -- the second it came out but but here's what we see.
I'm gonna take it eight point 6% unemployment rate is way better than a 9% rate but.
Here's the question everybody's asking Allen is the way we came to that figure reflecting that it came down.
Because more people simply decided to give up and stop looking for work.
Well first of all I think -- any economic report what one wants to do is take a step back and look at other data that are also coming in.
What the recent trends have been.
And I think what today's report suggests is that the economy is gradually healing.
-- The 21 month in a row of private sector job growth.
The unemployment rate came down as you mentioned that about half of the drop was due to declined at -- Labor force participation and about half was a result of an increase in job growth more people finding more.
But overall I think this is a picture which suggests that the economy is continuing to heal.
From the very deep recession that we had and I think it's very fortunate that a year ago.
Congress pass at the urging of the president.
Cut in the payroll tax and extended unemployment benefits and I think that's that those measures are helping to support the economy right now.
Absolutely -- date back again you want this number to be coming down and you can figure out the ends justify the means but it's our job to -- Look deeply into it and we know what's the silly season -- politics that you've got the other side the Republicans saying bad news is bad news and then good news is bad news but.
Let's quote somebody -- personally very much respect he's in sheppard's -- an economist at high frequency economics and this is what he said today.
-- to in this report that the NFIB small business employment components released ahead of the full survey on December 13.
Shown net hiring intentions at their best level since September of 08 just before the Lehman -- Something good is stirring in the US economy.
-- -- -- continue and what to wait what does the president need to do to do more of that to keep it coming.
Well I think.
What one wants to -- in interpreting these numbers is exactly what you suggested which is to look at all of the indicators are coming out.
I think it's extremely important that congress.
Extends that payroll tax cut that I mentioned earlier the if congress fails to extend the payroll tax cut.
That will -- thousand dollars tax increase for the typical American family -- around 50000 dollars a year.
Just starting in January when families -- try to pay off their credit card bills from.
From the Christmas shopping.
I think we have some potential headwinds in the economy coming up possibly from Europe.
We still have pretty weak residential construction despite their destruction might here behind me.
Yeah I know is that let me interrupt you because it could hurt your girls -- your -- for us we're we're short on time but one factor we've been looking out as well as extending that.
A tax cut is the exhausting the of the 99 week unemployment benefits for workers who will drop out of the labor force -- the benefit said.
We need to admit that will you push to extend unemployment benefits even longer at what could be considered a huge cost to taxpayers.
President in the American Jobs Act proposed extending unemployment benefits.
And I think it's important.
To know it.
That he paid for that extension a paid for all the other components in the American jobs back over a ten year periods of this would not -- a -- -- the government deficit I think together with extending the payroll tax extending unemployment benefits will provide -- critical support.
For American families in the new year and help to sustain.
This recovery look.
When you join us again thank you for being here.
Wellington so there is the chairman of the council of economic advice is lot of noise --